EDITORIAL | SRD grant showdown pits affordability against political will

Government departments will today go head to head over the expansion of the Covid-19 social relief of distress (SRD) grant to more beneficiaries, this time at the Supreme Court of Appeal.

National Treasury, sister departments, the ministry of social development and the South African Social Security Agency (Sassa) contend that rolling out the SRD grant to 18-million beneficiaries is unaffordable.

They want the SCA to rule that the Pretoria high court erred in its ruling that the SRD grant is a permanent feature under the Social Assistance Act.

They will tell the Supreme Court of Appeal that adding 10-million more beneficiaries to the current 8.3-million SRD beneficiaries will come with a hefty R93.5bn yearly price tag, which adds further pressure on an already constrained fiscus.

Also, increasing the R370 SRD grant to R663 a month in line with the child support grant will increase the cost to R139bn.

South Africa is one of the most unequal societies in the world and any intervention to address poverty should be prioritised, but this should be done in line with the economic realities of the country.

In ruling in favour of the # PayTheGrants case in January 2025, Pretoria high court judge Leonard Twala was scathing. He found that the system of administering the grants was unconstitutional as it unfairly excludes about 11-million recipients through barriers in the application process and the delayed payments of the grants.

Twala also ruled that the government and National Treasury should have planned a better budget to fulfil their obligations.

“It is unconscionable for the government to accept that the number of people who are with insufficient means to support themselves and their dependents is more than 18.3-million but only budget to provide for 10.5-million,” he said.

South Africa is one of the most unequal societies in the world and any intervention to address poverty should be prioritised, but this should be done in line with the economic realities of the country.

The IEJ says, in fact, the government has the money to fund the expansion of the much-needed grants.

IEJ researcher Kelle Howson told a webinar in August that South Africa in fact has the resources to feed its people and there are numerous revenue-raising options available.

“Affordability is often invoked as this kind of objective determined threshold that cannot be questioned, but affordability is not a God-given constraint. It’s a matter of political priorities and political will.”

Howson said social assistance also has a multiplier effect on the macro economy and can play a role in the growth crisis and the lack of jobs.